Judge approves claims process

Wednesday

May 8, 2013 at 7:06 PM

Those who lost money through the alleged Ponzi scheme, Zeek Rewards, have about four months to file their claim with the court-appointed receiver, according to a federal judge's order entered Wednesday.

BY NASH DUNNThe Dispatch

Those who lost money through the alleged Ponzi scheme, Zeek Rewards, have about four months to file their claim with the court-appointed receiver, according to a federal judge's order entered Wednesday.Senior U.S. District Judge Graham Mullen granted a motion to approve the receiver's proposed claims process, which will be accessed online at www.zeekrewardsreceivership.com. All claims submission forms must be filed and received by 11:59 p.m. on Sept. 5, according to the order. Additionally, any claims entered after the "bar date," by email, U.S. mail or any other mechanism are also disallowed, according to the order.Bell has said in recent months that the claims process will be active online within 14 days of the judge's order.Court-appointed receiver Kenneth Bell has collected more than $300 million for what he estimates as close to 800,000 "net losers" of the alleged scheme. The U.S. Securities and Exchange Commission filed securities fraud charges and froze the Lexington-based company's assets in August 2012, accusing the program, its parent company Rex Venture Group and its chief executive officer Paul Burks of raising more than $600 million through the offer and sale of unregistered securities.In the claims portal, victims will be able to provide proof of their claim, specify the type of claim and attach supporting documents, among other things.Once all are submitted, the receivership team will make a claim determination, which will reflect the aggregate amounts invested in, and received from, the operation, according to the filing.The actual distribution percentage will be established in the future, Bell has said, and will be based on total assets available for distribution, divided by the aggregate total of allowed claims asserted, according to the filing.Nash Dunn can be reached at 249-3981, ext. 227, or atnash.dunn@the-dispatch.com.

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